Universal service obligation for domestic parcel services removed

Published 29.06.2016

Basic postal services falling within the scope of a so-called universal service must be available to all consumers and businesses. FICORA removes Posti Oy's universal service obligation for domestic parcel services and delivering international parcels to Finland as there are several competing operators providing such services. Posti Oy's universal service obligation for sending parcels abroad remains.

Domestic parcel services and receiving parcels from abroad are widely available throughout Finland on market terms. Therefore, it is not necessary to designate an operator to provide these services any longer.

FICORA has analysed the provision of parcel services and customers’ access to parcel services falling within the scope of the universal service. “The market assessment revealed that there are several competing operators providing domestic parcel services in Finland. There is also competition in the market for delivering international parcels to Finland", explains Merja Saari, Head of Consumer Protection.

However, based on FICORA's analysis, there is not enough competition in parcel services provided for consumers and small businesses for sending parcels abroad in order to guarantee moderately priced services. Therefore, FICORA has decided to leave Posti Oy's universal service obligation for sending parcels abroad as it is.

Universal postal services, i.e. moderately priced basic letter and parcel services, are available throughout Finland. The universal services are guaranteed by the Postal Act and FICORA monitors compliance with the Act. FICORA assesses the markets for letter and parcel services regularly. If market assessment reveals that the universal service is not provided without a universal service provider, FICORA orders one or more postal operators to provide universal services in order to guarantee the provisions of services.